Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (10233)	5/17/2000 9:24:00 PM
From: Yamakita	Respond to of 17183

EMC Sets $1 Billion Service Provider Strategy By Nicole Volpe NEW YORK (Reuters) - Data storage equipment leader EMC Corp. (NYSE:EMC - news) on Wednesday unveiled a new program to sell customized storage equipment, software and services to Internet service providers and companies that manage the networks and computers of Web-based businesses. The company said it would allocate $1 billion dollars in research and development, staff and other resources over an unspecified multiyear period to place EMC systems in the data centers that house the back office operations of Web sites. ``We want to be more than a company that delivers product on the loading dock and walks away,'' said Tom Heiser, EMC's vice president of global channel development, in an interview. Company officials said profit margins of the new services would be in line with the overall profit margins of the company. ``We expect it to drive incremental hardware and software business,'' said Heiser. ``The reason we are investing in this is a leap of faith that there will be incremental business on the back side of this.'' EMC faces new competition from business computer makers, such as Sun Microsystems Inc. (NasdaqNM:SUNW - news), Dell Computer Corp. (NasdaqNM:DELL - news) and Compaq Computer Corp.,(NYSE:CPQ - news) who are seeking to sell storage as well as the computers that manage Web site functions, known as servers. Heiser said that customers will continue to break away to buy storage from EMC even as they buy computers from other companies because of the technological edge EMC provides. ``I think the customers are savvy enough that they'll demand it be broken out, especially as storage becomes more strategic,'' Heiser said. Businesses increasingly have to manage enormous and growing stored databases, and are looking to compete on their ability to use stored information to boost productivity. Heiser said the most popular configurations seen in data centers were Sun servers, EMC storage, Oracle Corp. (NasdaqNM:ORCL - news) databases and Cisco Systems Inc. (NasdaqNM:CSCO - news) networks. ``We are kind of the four horsemen of the Internet,'' he said. The new strategy included designing customized hardware and software, sending teams of service personnel to help design and manage EMC systems, as well as sales and marketing services teams to help market and finance service provider offerings.